West Australian farmers are taking legal action against ANZ, accusing the bank of ‘predatory’ and ‘unethical’ practices.

The farmers are believed to have borrowed from an investment scheme set up by the Australian Wheat Board called Landmark Financial Services.

The stoush stems from the 2009 purchase of Landmark’s loan book by ANZ, which included a large amount of rural clients.

Since the takeover, adjustments have been made to many of the now ANZ clients’ loan conditions. The farmers say the new stipulations have been too harsh, and risk driving many from their land.

Reports say around seven farmers have banded together to form the Rural Action Movement, which will take steps against the big bank.

Rural Action Movement spokesperson Greg Kenney says he hopes the case will prompt further inquiries into bank behaviour.

“I wouldn't like the class action to end with just those farmers that have come on board being the beneficiaries of it,” he said.

“I'd like to think that once the banking practice has been made public, that the public is aware of what they've been doing, practically in the bush, I'd expect that there'd be some reform.”

A spokesperson for the ANZ has today told reports that the bank s involved in absolutely no unethical or predatory behaviour.

The farmers say a class action will be brought before the Federal Court of Australia in Melbourne.

A Rural Action Movement website with details of the legal battle will be up and running shortly.